The Hindu Business Line : Skill development body takes shape

New Delhi, Aug. 19 The private sector has lent its unequivocal support for the establishment of the National Skill Development Corporation (NSDC). They have agreed to take 51 per cent stake in this “private-sector led” corporation, which would be a not-for-profit company.

The main purpose of establishing NSDC, with a capital base of Rs 10 crore, is to stimulate and co-ordinate initiatives in the skill development sector.

At a meeting chaired by the Finance Minister, Mr P. Chidambaram, here on Tuesday to discuss the establishment of NSDC, top brass of the apex industry associations/ chambers conveyed their full commitment to this initiative. Mr Chidambaram had expressed urgency on the matter and suggested that NSDC should commence operations from September 1 , Confederation of Indian Industry President, Mr K.V.Kamath, told reporters after the meeting.

Fund to be set up

Besides NSDC, a national skill development fund (NSDF) would be set up as a Trust fully owned by the Government, which will put in an initial corpus of Rs 1,000 crore. This trust would be a receptacle for financial contributions by government/government entities and multi-lateral and other donors who would prefer to provide funds through the government.

Official sources said that the mission, objectives and action plans of the NSDC would be anchored in and flow from the provisions of the proposed National Policy on Skill Development. NSDC is expected to develop simple, easily understood “core” employability skills and competency standards and provide a common platform for collaboration amongst private sector employers, training providers and the labour force.

NSDC would set up sector skill councils (SSC) in twenty high-growth sectors to enable the industry to link skill development efforts with the overall development of the sector.

SSCs will incrementally incorporate the unorganised sector. The major function of SSCs would be to develop sector-specific competency standards and qualifications consistent with the proposed national vocational qualifications framework.The identified twenty high-growth sectors include automobile and auto components; banking, insurance and financial services; building and construction industry; chemicals and pharmaceuticals; electronics hardware; education and skill development services and food processing/cold chain/refrigeration.

Industry representatives who attended the meeting said that ten different private sector body/industry associations, representing ten different sectors, would have equity shares of face value of Rs 51 lakhs to take the total private sector contribution to Rs 5.1 crore. The remaining Rs 4.9 crore would come from Government.

Equity shares in equal proportion are being offered to private players/bodies in automobiles, construction, electronics hardware, gems and jewellery, health care, leather and leather goods, textiles, hospitality, engineering and biotechnology sectors.

Besides Assocham and CII, industry bodies such as the Society of Indian automobile manufacturers (SIAM) and Confederation of Real Estate Developers Association of India (CREDAI) have already agreed to take stake in NSDC.

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Govt to have 49% stake in National Skill Development Corporation

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